News and Events - 2004

pdfYPI Purchases Sepulveda Center from Equity Office Properties Trust (NYSE: EOP)

LOS ANGELES January 13, 2004 Younan Properties (YPI), one of the fastest growing privately held commercial real estate investment firms in the U.S., has acquired the Sepulveda Center a 172,000 SF, Class A office building for $28 million from Equity Office Properties Trust (NYSE: EOP) one of the largest publicly held REITs in the country. The 12-story, all glass building is located at 3415 Sepulveda Blvd in Los Angeles, Calif. Strategically located at the Olympic Corridor, the Sepulveda Center was 80% occupied at the time of purchase. The building's key tenants include: Network Associates, Countrywide Financial, Verizon, Freeman, Freeman & Smiley and the City of Los Angeles.

The Sepulveda Center is a strategic acquisition for us. Due to its location, size and institutional quality of the asset, this transaction is a major turning point for YPI, said Zaya Younan, chairman and CEO of Younan Properties. We already have several tenants interested in expansion, which will bring the Sepulveda Center from 80% to 95% occupancy within the first three months.
The buyer, Younan Properties, represented itself. The seller, Equity Office Properties Trust (NYSE: EOP), was represented by David Doupe of CB Richard Ellis.

Younan Properties intends on upgrading the building exterior landscaping and most of the common areas to reflect a more modern Class A building. The Sepulveda Center
offers a variety of amenities such as a large parking structure, a restaurant inside the building, concierge services, a conference & business center, a helipad and close proximity to the 405 freeway.
Working with Zaya and his team was a pleasure due to YPI's hands-on, entrepreneur spirit and ability to get things done in a timely matter, said Doupe. There is no red tape at YPI this firm does not waste time in finalizing a deal.

pdfYounan's Building Portfolio in Dallas Has Increased to More Than One Million Square Feet

Dallas, TX/Woodland Hills, Calif. January 16, 2004 Younan Properties, LLC, one of the fastest growing commercial real estate investment firms in the U.S., has purchased The Meridian Center a 220,000 SF, class A office building from AEGON (NYSE: AEG) USA Realty Advisors, Inc. for approximately $12.6 million. Built in 1985, the 10-story office building is located at 2711 LBJ Freeway in Dallas, Texas. At the time of sale, the property was 45% leased with the following major tenants: Morgan Stanley, KB Home and Detroit Diesel Corporation.

This is another major acquisition in the Dallas market for us and a key milestone in establishing a critical mass in a fast changing Dallas market, said Zaya Younan, chairman and CEO of Younan Properties. We are continuing to work hard to not only stabilize our Dallas properties but also to locate prime assets in this under-discovered market. Our strength is adding value to our existing properties that may, at the time of the acquisition, be under performing in their markets, which is our goal for The Meridian Center.

According to YPI's current analysis of the Dallas office market, a significant turnaround is expected as early as the first or second quarter of 2004. The buyer, Younan Properties, was represented by Darrell Betts and Scot Farber of Grubb & Ellis' Southwest region. The seller, AEGON USA Realty one of the top five commercial real estate lenders in the United States represented itself.

Working with YPI is a privilege due to the fact that the firm's unique hands-on approach to managing real estate and in-depth market knowledge has made the transaction process extremely smooth for all parties involved, said Farber. Younan Properties continues to be one of the most active buyers in the Dallas Metroplex.

pdfYPI Acquires Key South Bay Office Building for $35 Million: Younan's Largest Purchase to Date

Torrance, Calif./Woodland Hills, Calif. February 18, 2004 Younan Properties (YPI), one of the fastest growing privately held commercial real estate investment firms in the U.S., has purchased Pacific Pointe a 260,000 SF, Class A office building for $35 million in a joint venture partnership with URDANG Capital Management, an institutional investment management firm based in Philadelphia.

Entering into a joint venture with a highly regarded institutional investor such as URDANG will reinforce our commitment and future goals in building a solid portfolio of quality assets in one of the fastest recovering office markets in the United States, said Zaya S Younan, chairman & CEO of YPI.

One of our goals for 2004 is to acquire trophy assets throughout the South Bay a strong sub-market that has been stable over the past few years even during the recent commercial office recession. Our partnership with URDANG will strengthen our ability to quickly close deals in a shorter time frame without sacrificing the quality of our due diligence process.

Built in 1988, the 12-story Pacific Pointe office building is located at 879 190th Street in Torrance, Calif. At the time of purchase, the building was 65% leased with key tenants such as Northrop Grumman, IBM, Hyundai Corporation, KForce, Bowman & Brooke and Allison-Fisher International.

Younan Properties is the type of joint venture partner URDANG has been seeking for a long time due to the firm's ability to successfully identify, acquire and reposition not only unstable but stable assets, said David Rabin, senior vice president of acquisitions for URDANG. This partnership will help us achieve our goal -- to increase our investment portfolio in California and other Western markets.
The buyer, Younan Properties, was represented by Westridge Realty. The seller, Andrex Pointe Office Building, LLC, was represented by Kevin Shannon, senior vice president in the South Bay office of Grubb & Ellis.

Zaya Younan and his entire acquisition team are deal makers not deal breakers, said Shannon. Due to Zaya's strategic thinking and creative solutions, this complex deal was completed seamlessly. YPI brings to the table a very fresh, innovative perspective to commercial real estate and it was a pleasure working with them.

About URDANG Capital Management:

Founded in 1987, URDANG Capital Management has achieved an outstanding investment track record of consistently exceeding its clients' investment performance objectives. This success is anchored in the entrepreneurial culture that enables the firm to uncover hidden investment opportunities. URDANG manages both private equity investments and portfolios of real estate securities, primarily publicly traded real estate investment trusts. Equally important, the firm's presence in both the private real estate and public real estate securities markets, has allowed the firm to expand its clients' investment opportunities with programs tailored to their strategic goals. Additional information is available at www.urdang.com.

Younan Properties Establishes Its First Joint Venture With Urdang Capitol Management

pdfAggressive Plan Targets Eight Hotel Properties By End of 2004;10,000 Rooms By End of 2005

Woodland Hills, Calif. March 23, 2004 Younan Properties, Inc. (YPI), one of the nation's most successful commercial real estate investment firms, has launched the Younan Hospitality Division, which will be based in Woodland Hills, Calif. Under this newly created division, a strategic plan has already been implemented to target at least eight hotel properties by the end of 2004 and a total of 20 hotel properties by the end of 2005.

Currently in escrow is YPI's first hotel acquisition -- a 377-room, full-service Holiday Inn Select located at 2645 LBJ Freeway in Dallas, which is owned by Wyndham International (AMEX: WBR). In addition, the firm is in negotiations on four additional hotels located throughout the United States.

Zaya Younan, Chairman & CEO of Younan Properties, is already known for his aggressive track record and excellent returns in the commercial office market. Since the company's founding just two years ago, the firm has acquired more than 28 office buildings, totaling 3.5 million square feet, bringing investors returns as high as 300%.

We are economists by nature; we understand the world economy and pride ourselves in correlating its impact on different segments of the business and real estate market, said Mr. Younan. We've been monitoring the hospitality market for the past two years and all the factors in the economic cycle have fallen into place, making this the right time to move into hospitality. We strongly believe that the hospitality industry has bottomed and we intend to take advantage of this opportunity.

Younan Properties has built a reputation in just two years for the unique ability to select prime under market value assets, acquiring the properties, embarking on an aggressive repositioning campaign, then returning the assets to the market bringing high yields back to the investors.

While we intend to maintain our edge in the office market, our diversification into the hospitality industry is a natural outgrowth, said Mr. Younan. By selecting prime under-utilized hospitality properties, we intend to duplicate the success we've enjoyed in the office market, and the positive impact we had in surrounding communities throughout the country.

Younan noted that while the company will focus on the hospitality division in major metropolitan areas of the US and overseas, growth for the firm's office portfolio is targeted to double in size, expanding from its current three million square feet to six million square feet by the end of 2004.

YPI's acquisition plan targets hotels located in major metropolitan areas such as Texas, Northern California, Florida, Chicago and New York. According to Mr. Younan, many franchised hotels have properties that are no longer a part of their core asset or they have been negatively impacted by the recession. Yet economically, these properties have the potential to offer us an excellent rate of return when they are repositioned and managed properly in their perspective market.

pdfYPI Purchases Holiday Inn Select Dallas-North: A 377-Room, Full-Service Hotel Transaction Closed In Less Than 60 Days

Dallas, TX/Woodland Hills, Calif. April 1, 2004 Younan Properties, Inc. (YPI), one of the nation's fastest growing commercial real estate and hospitality investment firms, has successfully acquired a 377-room, full-service Holiday Inn Select Dallas-North hotel located at 2645 LBJ Freeway in Dallas, which was owned by Wyndham International (AMEX: WBR). Terms of the transaction were not disclosed due to a confidentiality agreement.

This is our first major hotel acquisition and a key milestone for us as we move into the hospitality market, said Zaya S. Younan, Chairman & CEO of YPI. During the past two years, we've been monitoring the hospitality market and all the factors in the economic cycle have fallen into place, making this the right time to move into hospitality.

The buyer, Younan Properties, LLC, represented itself. The seller, Wyndham International (AMEX: WBR), was represented by Ron Danko of CB Richard Ellis. Peter Bheda, President & CEO of Dallas-based Platinum Portfolio, Ltd, will be managing YPI's Holiday Inn Select property. Platinum Portfolio, Ltd. is a hotel management company that believes and accepts its prime directive to be the financial success of its owners and investors. Bheda, who is known for his ability to turn around under performing hotels, has managed individual and multiple hotels both as vice president and general manager. A former Wyndham executive, with more than 32 years in the hospitality industry, he has managed a portfolio of brands including Inter-Continental hotels overseas, Hilton Hotels, Omni Hotels, Radisson Hotels, Embassy and Doubletree Hotels.

We have the ability to create a team focused on equity, quality management and profitability, said Bheda. As YPI's manager of Holiday Inn Select, we will bring a seasoned team to the property capable of maintaining a high standard of management that will exceed guest expectations. This strategy translates into profitability.

Recently, YPI just launched the Younan Hospitality Division, which is based in Woodland Hills, Calif. Under this newly created division, a strategic plan has already been implemented to acquire at least eight hotel properties by the end of 2004 and a total of 20 hotel properties by the end of 2005.

Mr. Younan is already well known for his aggressive track record and excellent returns in the commercial office market. Since the company's founding just two years ago, the firm has acquired more than 28 office buildings, totaling 3.5 million square feet, bringing investors returns as high as 300%.

Our unique ability to move from an LOI to completing a transaction in less than 60 days shows our commitment to becoming a major player in the hospitality industry, said Younan. While we intend to maintain our competitive edge in the office market, our diversification into the hospitality industry is a priority.

About Holiday Inn Select Dallas-North:

Located at the northeast corner of Stemmons Freeway (I-35) and LBJ Freeway, (I-635), just 12 miles from DFW Airport and 13 miles from Love Field Airport, the Holiday Inn Select Dallas-North has six floors with 377 spacious guest rooms and four beautifully appointed suites. Each guest room includes two phones with dataport and voicemail, coffee maker, iron and full-size ironing board, hair dryers, make-up mirrors, and spacious desk. Guest rooms on our Executive Edition concierge level include use of the club floor lounge, business services and our complimentary breakfast & evening reception on weekdays. The hotel offers an indoor/outdoor pool, fitness center, 15,000 square feet of versatile meeting and banquet space, a cocktail lounge, a restaurant and business services.

pdfReal Estate Veteran Responsible for Managing YPI's Large Commercial Portfolio

Woodland Hills, Calif. April 5, 2004 Jerry Bruno has joined Younan Properties, Inc. (YPI), one of the fastest growing commercial real estate investment firms in the United States, as Director of Asset Management. In his new position, Mr. Bruno will be an essential member of the senior management team and will be responsible for managing the firm's assets throughout California.

Jerry's more than 20 years of experience and accomplishment in the commercial real estate industry will be instrumental to support our growth and aggressive expansion in other markets, said Zaya S. Younan, chairman and CEO of Younan Properties.

Prior to joining Younan Properties, Mr. Bruno worked for BH Properties as Director of Property Management, where he was responsible for a large, multi-use portfolio with assets located in California, Washington, Arizona, Texas and Florida.In addition, Mr. Bruno was Senior Property Manager for AH Warner Center Properties, LLC owned by Transwestern Commercial (from 2000-2002) and The Voit Companies (from 1997-1999). Both companies managed the Woodland Hills AH Warner Center portfolio consisting of 1.8 million feet of class A high-rise office space and 450,000 feet of low-rise office assets.

He began his career at Trizec Properties, Inc., where he held the titles of Leasing Manager, Director of Leasing and Property Manager. For 12 years, he leased and managed class A office space in various Los Angeles sub-markets.

I have been following YPI's performance over the past two years. I am amazed how quickly Zaya Younan has guided his firm's growth and prosperity during a time of depressed office market conditions, said Mr. Bruno. Unlike other real estate investment firms, Zaya views real estate ownership as a process to be improved and innovated on a daily basis and he is not afraid to apply new techniques and ideas to the industry. I am excited to be part of the YPI team and I look forward to being a contributing team member as YPI pursues new ventures.

Mr. Bruno will be graduating this May from California Lutheran University with an MBA degree. He received a bachelor's degree in real estate finance from California State University, Northridge. Mr. Bruno holds a real estate brokers license and the CCIM designation (Certified Commercial Investment Member) and he is a member of the Los Angeles Chapter of The Institute of Real Estate Management (IREM).

pdfThe 400,000 SF Building Will Undergo a $5 Million Renovation Effort

Phoenix, AZ/Woodland Hills, Calif. April 13, 2004 Younan Properties (YPI), one of the fastest growing privately held commercial real estate and hospitality investment firms in the U.S., has acquired Central Plaza a 400,000 SF, Class A office building from MetLife for $21 million. The 20-story office building is located at 4041 N. Central St. in the central business district of downtown Phoenix, AZ and was 60% occupied at the time of sale. Built in 1982, the building's key tenants include: Mutual of Omaha, Qwest, Citibank, Ashton Tiffany and Federal Express.

Phoenix is one of the few markets that is oversold but is now well positioned for a major recovery, which is expected to start towards the end of 2004, early 2005, said Zaya Younan, chairman and CEO of Younan Properties. Our goal was to own the largest building in this market with a high vacancy rate in order to take advantage of the recovery when it occurs. We anticipate to stabilize this asset by mid-2006 when we reach 90% occupancy. The buyer, Younan Properties, represented itself. The seller, MetLife, was represented by Glenn Smigiel, of CB Richard Ellis.

Younan Properties' $5 million renovation plan includes upgrading the entire building - both interior and exterior. According to Mr. Younan, there are only a few assets in the Phoenix market that can offer tenants with such a prime location Central Plaza is strategically located north of the CBD, only a few miles from Scottsdale, AZ.

I definitely would work with Zaya and his team againtheir responsiveness and ability to get things done in a timely matter are valuable assets, said Smigiel. From a brokers standpoint, it is extremely valuable to work with an investment firm that understands all the details of the transactional process and does not waste time in finalizing a deal. Because of YPI's expertise, this transaction moved through the process with no hinges.

Based in Woodland Hills, Calif., Younan Properties is an entrepreneurial commercial real estate and hospitality investment firm that specializes in acquiring, repositioning and managing office and hotel properties throughout the country.

Since the firm's founding in January 2002, Younan Properties has excelled in delivering exceptional returns to its investors by identifying under-performing assets and re-positioning the properties. In the last two years months, the firm has acquired more than 25 office buildings throughout the U.S. totaling more than 3.2 million square feet, and sold 12 buildings with more than one million square feet. In 2004, YPI launched the Younan Hotels Division and plans on acquiring at least eight hotel properties by the end of 2004 and a total of 20 hotel properties by the end of 2005.

pdfWoodland Hills, Calif. May 5, 2004 Ruben Dua has joined Younan Properties, Inc., one of the fastest growing privately held commercial real estate and hospitality investment firms in the U.S., as director of business development and investor relations.

Ruben's strong management and marketing experience, coupled with his capability for developing and executing sound, strategic business plans, will be a significant asset in growing Younan Properties into the leading commercial and hospitality investment group, said Zaya S. Younan, chairman and CEO of Younan Properties.

Mr. Dua began his career at Sony Corporation in the business affairs department, where he served as a key component of the enhancement of the company's distribution efforts. Mr. Dua's more recent accomplishments include serving as a manager for one of the leading real estate lenders in the country -- Lending Tree, Inc. At Lending Tree, he was responsible for business development with companies such as Costco, American Airlines, Yahoo and Sears. Additionally, Ruben served as a lead manager for Genex, Inc., where he served as a business consultant for private and Fortune 500 companies such as Honda, Honda Finance, Acura and Warner Bros.

Mr. Dua graduated with a bachelor's degree from the University of Southern California in business administration and communications.

pdfVeteran Hotelier Named to Oversee Younan's Aggressive Hotel Acquisition Plan

Dallas, TX/Woodland Hills, CA May 26, 2004 Younan Properties, Inc. (YPI), one of the nation's fastest growing commercial real estate and hospitality investment firms, has announced the acquisition of Dallas, TX-based hotel management company, Platinum Portfolio, Ltd. As part of the acquisition, Platinum's Founder & Chairman, Peter Bheda, was named President & COO of Younan Hotels Group.

YPI has implemented a strategic business plan to enter into the hospitality market and, with the acquisition of Platinum Portfolio, we have acquired the resources and management expertise to execute our business plan and strengthen our position in the hospitality industry, said Zaya Younan, Chairman & CEO of Younan Properties.

Mr. Bheda's management organization not only brings the proven leadership to oversee Younan Hotels Group, but also possesses the in-depth knowledge in hotel operation and hands-on management skills needed to succeed in this competitive business. We are confident that his company and vast experience will be an integral part of our growth and success in the hospitality industry.

Younan Properties recently launched a new division of its firm, Younan Hotels Group, with the purchase of Holiday Day Inn Select -- a 377-room, full-service hotel located at 2645 LBJ Freeway in Dallas, which had been managed by Platinum Portfolio, Ltd.

According to Mr. Younan, We selected Mr. Bheda to be part of our executive management team due to his significant hospitality experience and his superior operational management skills. He has already demonstrated excellent turn-around abilities and, under his direct leadership, has had an immediate positive impact on the profitability of our first hotel, Holiday Inn Select in Dallas.

Mr. Bheda has more than 30 years experience as a senior executive in the hospitality industry with a track record of producing high yield profits through a disciplined process of revenue and operational management. As the Founder and CEO of Platinum Portfolio, Ltd., he managed individual and multiple hotels both as General Manager and Vice President of Operations. Prior to starting his own company, he was Vice President of Operations and Development for Patriot American Hospitality and Wyndham International. Mr. Bheda's hotel management experience includes managing a portfolio of brands including Hilton Hotels, Sheraton Hotels, Omni Hotels, Radisson Hotels, Embassy Suites, Double Tree Suites, & Inter Continental Hotels abroad.

I decided to merge with YPI due to the company's strong reputation in the market and for their unique ability to turnaround under-performing assets resulting in high yields for their investors, said Mr. Bheda.

The goal of Younan Hotels Group is to acquire a minimum of eight hotel properties by the end of 2004 and a total of 20 hotel properties by the end of 2005. The Hotels Group's business plan targets hotels located in major metropolitan areas in Texas, California, Florida, Chicago, and New York, with international hotels and resorts acquisition to follow shortly thereafter.

pdfWoodland Hills, Calif. July 26, 2004 Quentin Thompson has joined Younan Properties Inc. (YPI), one of the top commercial and hospitality real estate investment firms in the United States, as Chief Financial Officer (CFO). In his new position, Thompson will be an essential member of the senior management team and will be responsible for all financial reporting, capital market transactions and investor relations for the growth of YPI's commercial and hospitality divisions.

Quentin offers YPI more than 20 years of real estate/finance experience leading well-known, publicly traded REITs in the country. At this stage in our growth, we decided to hire a seasoned executive with accomplished skills not only in the finance and accounting industries but also experience running publicly traded real estate companies, said Zaya S. Younan, chairman & CEO of Younan Properties Inc. His proven strength in building a firm's infrastructure to support an evolving company is invaluable to us since our goal is to continue to grow our asset portfolio.

Prior to joining Younan Properties, Thompson served as CFO for Colliers Seeley International one of the oldest and largest commercial real estate brokerage firms in Southern California, operating 13 offices located in Los Angeles, Orange, Ventura, Riverside and San Bernardino counties. For more than four years, Thompson was responsible for accounting, financial engineering, information systems management, merger and acquisition structuring and due diligence.

In addition, Thompson served as vice president of finance for Westfield Corporation Inc., a subsidiary of Westfield Holdings Limited, which advises, manages and develops properties for Westfield America, Inc. a shopping center REIT with a portfolio totaling approximately 36 million SF of mall stores in eight states.

Prior to joining Westfield, Thompson was the CFO at G& L Realty Corporation a REIT that specializes in the ownership and management of healthcare properties nationwide.

Over the years, Thompson has also worked for Sovereign/Ring Property Management as CFO for five years and served as vice president and controller for more than six years. In addition, he was an audit manager from Coldwell Banker and was the CFO at Paragon Partnership Services.

My decision to join YPI is very simple. I have never seen such growth and profitability from any other real estate investment firm to date, and I have spent my whole career working in this market, said Thompson. During market downturns, firms that stay focused on economic fundamentals will survive. Due to YPI's discipline and vast market knowledge, this firm will not only surviveit will flourish.

Thompson received his bachelor's degree, magna cum laude, in business economics from University of California, Santa Barbara. He is a certified public accountant and began his career as an accountant for Deloitte & Touche. Currently, he is a member of the American Institute of CPAs (AICPA), the California Society of CPAs (CSCPA) and Financial Executives International (FEI). His past memberships include president of the Apartment Association serving San Fernando Valley and Ventura County in 1994 and chairman of the Accounting and Reporting for the California Apartment Association also in 1994.